Microsoft: Christmas 360 sales up 120% in Europe

It was an odd move since the E&D division has been profitable for over a year.

Probably so they can focus resources away from sections that are established and doing well towards ones that are likely to turn a profit in the future but need help now - e.g. windows 7.

It wont

Why do you think that? Is there any evidence to suggest that it wont or do you just HOPE that it doesn't continue?

Since you're displaying your PSN name I'm gonna guess that you just aren't too fond of Microsoft or the Xbox 360.

Nutman

Allow me to offer my take on the question you posed. I don't think it (360) will move holiday 08 numbers throughout all of 2009 like the Wii had done consistently. I'm just not sure they can keep that same momentum going with their lack luster game lineup in 2009. The PS3 had been outselling the 360 world wide until the holiday season when they announced the price cut. I just worry that the lower priced Arcade will canabalize price reductions of Pro and Elitie SKUs. I just think there isn't much more MS can offer in terms of incentive to purchase a 360 like there was over the '08 holidays. The Wii has still yet to see a price decrease from it's price point and the PS3 could (presumably) recapture some market share with it's lineup of exclusives and a similarly strategic price cut.

I'm not saying that the 360 can't keep the momentum going but I think what you saw from them in 2008 before the holiday sales increase is more in line with what the sales will probably be.

I also have my PSN ID in my name and I do hate MS (for other reasons) but I'm trying to be objective here and tell you an honest and unbiased analysis.

Thanks for the response Baby J Penn.

I think we'll have to wait and see what happens with Microsoft's E3 announcements. Aaron greenberg said that they have multiple 1st and 3rd party exclusives that are unannounced. Could be some neat stuff in there...

I'm not sure if it will continue to do well, but there's a good chance. Why? Simply, the price. It's much lower now which means that a lot more people can afford it. But none of this matters if people don't buy it for other reasons. We'll just have to see.

Also, I wasn't saying that anyone who has their PSN name in their ID is a Microsoft hater. I just could tell that the other guy was a fanboy and the PSN name being on there just gave more evidence.

thats what i meant to say but didnt feel like typing

i was wondering the same thing.

Please show me your economics degree, then i might take your opinion into consideration

You might be right about the PS3. The difference is that they aren't as worried about market share as they are with profitability. MS has shown they aren't in the gaming business to make money and they 360 is more of a fun project than a serious portion of their business.

If Sony keeps releasing top tier exclusives then the price won't matter as much because couldn't afford to live without it.

They can't sacrifice turning a profit to gain market share. Whatever Sony does we can all be assured that MS will follow with a strategic price drop of it's own. SCE just needs to keep pumping out the great games and touting the value mantra to potential customers.

@ Baby J Penn (PSN johnnynumber5)

Actually, they are in it to make money. Now gaming is not the cash cows that office and windows are but the entertainment division actually has some year over year growth in revenues (unlike windows and office) and now makes a profit. They make a profit on every Xbox 360 sold even at the lower price point.

Wall Street rewards growing companies not companies that simply generate a huge amount of cash and profit. Their entry into gaming was their attempt to enter a growing market just like their continued Windows Live search effort is their attempt to enter what was a growing advertising market (now that is a lost cause) because Windows and Office have no more real growth opportunities. The market is too saturated with their products for them to grow.

The first Xbox was just to get some credibility and their foot in the door. The 360 was their attempt to actually make some money on the gaming market. Imagine how far ahead the 360 would be right now if the red-ring design issue hadn't cropped up.

All businesses are in it to make money.

Personally I'm glad we have three consoles in market. The PS3 and 360 wouldn't be anywhere near this cheap in their life cycles if they weren't competing against each other. Look at the Wii. Look at all the crap games and shovelware that system is getting because it has no real competition. With MS and Sony at each other throats, they both are putting gobs of money into game development and making some really great games as a result.

"Microsoft has revealed that European Xbox 360 sales during Christmas '08 were 120% higher than the same period in '07."

Christmas08 = Christmas07 + 1.2 * Chrismas07